The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1887-09-06
Dauaiian C5azette
TUESDAY. SEPTEMBER 8, 1887.
NATIONAL FINANCES.
statement by the minister Of Finance.

OA NSuoAA VI lIt NfAZE1IE. duO dSheU
II he had any objection to make ex-
plantations with regard to certain re-
marks and statements on finance
matters. which appeared in the Daily
Bulletin of the 1st and 2nd inst.
The Minister said, certainly not;
on the contrary he was glad to have
an opportunity of explaining certain
questions which he was well aware
might be properly asked.
With regard to the point made by
the BulIetiH of September 1st, that the
Finance Minister might as well add
| the coin in the treasury deposited
against certificates, to swell the bal
ance of cash on hand on June 30th,
as include the amount received from
the Postal Savings Bank, the Min
lister thought that this should not
require much explanation. The
amount held specially against certi-
fieates of deposit had to be so kept
in the tresaury by law: no interest
was payable on the amount and no
! loss accrued to the treasury by so
keeping it. The money received
from the Postal Savings Bank. on
the contrary. was allowed by law to
/ be used for general purposes, and
interest is payable on it. 1t Is loan
to the Government, and as much enti-
tied to be included in the general re
ceipts as the amount of S1,300,942 81
from the loan fund. The Govern
ment is only called upon to take
care that it shall have cash on hand
to meet probable calls, the same as
any banker is called upon to do in
his ordinary business.
The principle that the ordinary ex-
penditure of the Kingdom should be
paid out of ordinary receipts and not
from borrowed money is too evident
to require discussion, and that is
one of the principles that the present
Cabinet proposes to adhere to. It
has to be remembered, however. that
the present Minister of Finance is
working out an Appropriation Bill
and Loan Bill passed by the last
Legislature, and has no power to
inaugurate new financial pro
/ gramme until the next Legislature
meets. This remark applies at the
same time TO some of the objections
made by " Finance" in the Bulletin of
/ the 2nd inst. to the Intermediate
Finance Report Just published.
With regard to the S43,SO7 80 re-
ferred to by Finance " as belonging
to the Loan Fund, $4,000 of it was
paid the next day, July 1st, to cancel
bonds which the late Government had
! agreed to cancel This left only
! S23.S07 80 of the Loan Fund money
in the treasury, which has been more
than absorbed by the different
amounts paid out since. belonging
and chargeable to the Loan Fund
1 appropriations
/ The Minister is prepared to take
the responsibility of paying out the
/ $4,000 estimated to be received from
the Postal Savings Bank, as it comes
in, for general purposes, and he GER
tainly should not hold it in the treas
ury till depOsitors may call for it, and
pay "a higher rate Of interest in
/ other quarters. The Minister of FL
nance thoroughly understands that
any money he may borrow by the
Loan Act has to be charged to the ap-
preparations specified therein, and it
viii be his care not to borrow more
than can be so applied.
On the question as TO how the pay
ment Of road damages for widening
| the streets Of Honolulu in the burnt
district may be charged, it seems
quite legitimate to charge it to the
Loan Fund appropriation for " I'm
| proyement Of the streets of Honolulu
and roadways Of the Kingdom.
With regard to the statement OF
e Finance" that the Government has
not borrowed any money at par except
in the negotiation Of the claims for
road damages, this Is simply mis-
take on his part. The Minister of
Finance has borrowed and definitely
agreed for S20,700 cash for six per
| cent. bonds at par and no commission.
I Further amounts are promised. These
amounts will probably be sufficient to
carry on the Government for the pres
ent, but when the tina comes to pay
the " Madras judgment, $4,000, and
the japanese claim for wages of Jap
anese Interpreters and physicians,
S35, 900, more or less, further amount
viii have to be borrowed. The latter
sum viii be chargeable to the appro-
priation Of the Lean Fund, 4" Encour-
agement Of Immigration" The S32,-
600 Is not chargeable to any appropri-
alton of the Loan Fund, but if the
amount has been expended out Of gen
eral receipts On objects which are so
chargeable, it then becomes a mere
question Of account. The money Is
borrowed and passed into the treasury
to the credit Of the Loan Fund. hay
ing been already charged to the prop
( erLoan Fund appropriations On which
It may have been expended out Of or
dinary revenue. As a rule, the Loan
Fund moneys have been paid out Of
ordinary receipts before the loan
money has been received. The